Dozens Charged in $250 Million COVID Fraud Scheme

Source: US FBI

During a news conference announcing the charges, FBI Special Agent in Charge Michael Paul said that the FBI’s forensic accountants played a key role in untangling the scheme.

“During this investigation, the FBI followed many trails—including both money trails and paper trails—filled with falsified invoices and receipts, fictitious names, and an inconceivable number of meals allegedly served, all representing an astonishing display of deceit and evidence of outright fraud,” he stated.

Although the 18-month long investigation was extremely complex, Paul said the crime was quite simple: “It was just a massive fraud scheme.”

To date, the FBI and its law enforcement partners have conducted more than 100 search warrants, completed an additional 100 seizure warrants, and reviewed more than 1,000 bank accounts. U.S. Attorney Andrew Lugar announced that the government so far has been able to recover $50 million from 60 bank accounts, 45 pieces of property, and numerous vehicles and additional items, such as electronics and high-end clothing. Additional seizures are expected. 

“These indictments describe an egregious plot to steal public funds meant to care for children in need in what amounts to the largest pandemic relief fraud scheme yet,” said FBI Director Christopher Wray. “The defendants went to great lengths to exploit a program designed to feed underserved children in Minnesota amidst the COVID-19 pandemic, fraudulently diverting millions of dollars designated for the program for their own personal gain. These charges send the message that the FBI and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

If you think you are a victim of a scam or attempted fraud involving COVID-19, call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or fill out the NCDF Web Complaint Form.

Partnership with Italian Authorities Leads to Artwork Return

Source: US FBI

“The Italian government and the U.S. government work very closely on art crime matters, and we’ve been doing so for years,” said Special Agent Marc Gervasi of the FBI’s Miami Field Office, who worked this case. “We’ve had a lot of success in repatriating items stolen from Italy, and Italy helps the FBI with investigations in significant ways.”

Gervasi and his colleagues approached the owner, who had bought the tapestry 22 years prior, and explained that the piece belonged to Italy. It had been stolen before the current owner bought it. The owner graciously agreed to return it.

Considering the owner purchased the piece for $27,000, it was no small sacrifice.

“They could’ve said talk to my attorney, or Italy can talk to my attorney,” Gervasi said. “It could’ve been a battle, but they chose to help law enforcement. They really wanted it to go back to the original owner.”

Similarly, the FBI’s Miami Field Office learned in May that a gallery in Jacksonville had another Italian tapestry, also believed to be from the 16th century, for sale on their website.

It had been stolen from the same gallery in Milan, Italy, in 1995. It entered the legitimate art market sometime after that and was sold for $55,000 in 2003.

Neither the gallery owner nor the homeowner had the provenance, or the ownership history, of the tapestries.

“Requesting a provenance on a piece of art can help the buyer determine the veracity and history the art,” Gervasi said. “If a seller cannot provide a provenance, the buyer should consider if they want to continue with that purchase.”

The gallery, upon learning of the history of the tapestry agreed to turn it over. “The gallery owner showed us the tapestry and said it was his favorite piece in the gallery. He had an emotional attachment to it,” Gervasi said.

By June, the FBI had the second tapestry.

Both tapestries, along with several other pieces of Italian art that the FBI had helped track down in the U.S., were then returned.


Historic Gold Coins

In 1977, 6,000 gold coins were stolen from the National Archeological Museum in Naples, Italy, as part of a massive art heist.

FBI, Partners Working in Concert to Curb Violent Crime

Source: US FBI

Another area the FBI helps our state and local partners is by investigating groups of violent criminals, just as the agency has done throughout its history.

“We can supplement local resources and bring that expertise to the table. We can help our partners investigate the full scope of a violent criminal organization that’s maybe not immediately visible and then come up with ways to disrupt or dismantle that organization,” Perez said.

As a result of these joint efforts, law enforcement was able to disrupt the operations of nearly 845 gangs and violent criminal enterprises and get to the heart of more than 100 of these groups by arresting key leaders and seizing their assets. 

“I believe the FBI’s most sacred duty is to ensure people can live free from fear in their own homes and neighborhoods,” said FBI Director Christopher Wray. “To that end, we dedicate agents, analysts, and technical resources across the country to work with state and local law enforcement on these operations.”

Learn more about the FBI’s work in investigating violent crime at fbi.gov/violentcrime. Report tips to tips.fbi.gov; you can remain anonymous.

Michael James Pratt Named to FBI’s Ten Most Wanted Fugitives List

Source: US FBI

“He used deceit and lies and vindictiveness to torture the young women he caught in his snare,” Green said. “And we believe that he will continue to look for the opportunity to victimize more women and more people for his own financial gain.”

Several of Pratt’s co-conspirators have faced justice for their roles in the scheme. The websites’ cameraman and its bookkeeper each pleaded guilty to trafficking charges in 2021. One of the websites’ lead recruiters and producers, Ruben Garcia, of San Diego, was sentenced to 20 years in prison for his role in the trafficking conspiracy. Pratt’s alleged co-owner, Matthew Isaac Wolfe, pleaded guilty to conspiracy to commit sex trafficking by force, fraud, and coercion. Wolfe is scheduled to be sentenced in October 2022.

Pratt is the only major player in the conspiracy who is still at large.

Pratt is 6 feet tall and weighs about 200 pounds. He has brown hair and hazel eyes, and speaks with the accent of his native New Zealand. In addition to his connection to New Zealand, Pratt has ties to Australia and the financial means to travel the world.

“We feel that there are people out there who have been helping Michael Pratt to hide,” Green said. “He has probably promised them the world—giving them money, buying them gifts in return for providing him a safe haven.” Green encouraged anyone who may be aiding Pratt to consider their own best interests—along with the interests of the many victims in this case—and come forward with information.

To provide a tip or information about the whereabouts of Michael James Pratt, please contact your local FBI office or the nearest American Embassy or Consulate. You can also call 1-800-CALL-FBI or submit a tip online at tips.fbi.gov.

FBI Returns 2,000-Year-Old Italian Art That Languished in a Los Angeles Storage Facility for Decades

Source: US FBI

The next challenge was logistical. The mosaic had to be carefully packed and shipped in such a way that it would arrive undamaged. Luckily, the anonymous individual who had possession of the work agreed to pay for specialized shipping crates.

“We worked with the owner and made sure we documented the condition and had everything we needed to ship it back to Italy,” Grove said. “We then worked with the Italian consulate here in Los Angeles. This is something of great interest to Italy; they came and inspected the mosaic and helped us facilitate the logistics of actually getting it back to Italy.”

The art arrived safely in April, and experts are now working to clean and restore it so the art can be enjoyed by generations to come.

“The mosaic was handcrafted from an age where people put an amazing amount of care and effort into it. It really speaks to the ingenuity and creativity of the time,” Grove said. “It’s not meant to be in Los Angeles. The mosaic belongs to the people of Rome. It allows us to understand a bit about the history of humans 2,000 years ago.”

The ability to work closely and collaboratively with the Italian government was key to the success of the repatriation, as was the willingness of the art lawyer to reach out to Special Agent Rivas about the piece.

“We were very happy they contacted us,” Rivas said. “If they hadn’t, it could’ve been in storage for another hundred years. It’s a successful example of how we can work together to get pieces back to where they belong.”

Operation Cross Country Recovers Trafficking Victims

Source: US FBI

In Chattanooga, Tennessee, teams from 14 law enforcement agencies worked on a three-day operation. Their work included locating sex offenders who had failed to register, tracking predators who approach children online, and looking for a runaway teenager at high risk for being trafficked.

The result was three arrests: one of an unregistered sex offender (which will become a federal case) and two state arrests.

Two federal cases were opened on suspects who may have been involved with child sexual abuse material production or enticement violations. Enticement involves using the internet to coerce a child (or someone connected to the child) to manufacture sexually explicit material of a child.

This year’s Operation Cross Country expanded to investigate sex offenders who may be eligible for federal charges and people trying to connect with children online to sexually abuse them. It’s a hybrid model that has expanded the traditional role of Operation Cross Country, said Sam, a special agent who leads the Chattanooga office’s crimes against children investigations.

“With the advent of social media, access to mobile devices and technology … they’re out there in the neighborhoods not being monitored,” Sam said. “And we don’t know if they’re going to have access to these communication devices to continue to exploit children online or have inappropriate physical contact with children.”  

Estimates Will Help Fill in Crime Statistics Gap

Source: US FBI

When the annual Crime in the United States (CIUS), 2021 data is released this fall, it will look different from previous releases. CIUS 2021 will only represent state-level data and federal data reported by law enforcement. In conjunction with CIUS, the FBI will release a trend study that will look at a year-over-year change in violent crime and property crime.

The reason for the change is that not every law enforcement agency in the U.S. has successfully moved to the National Incident-Based Reporting System (NIBRS) for reporting their crime data to the FBI. With support from the FBI, some agencies have been reporting crime statistics via NIBRS for more than 20 years. After the CJIS Advisory Policy Board adopted the recommendation in 2015 to retire the traditional Summary Reporting System and transition to the more comprehensive NIBRS by January 2021, more agencies made the switch to NIBRS reporting. Every state is now NIBRS compliant and can accept NIBRS data. A few major cities, however, are still working on the transition.

Crime estimates will fill in the gaps where data is not available this year. Estimation has been associated with the release for more than 50 years. This year, FBI data experts will use robust estimation tools, developed in collaboration with the Department of Justice’s Bureau of Justice Statistics, to create the most accurate crime estimates possible during this transition period.

How Crime in the United States Will Look Different This Year

During this transition year, participation has remained too low for a representative sample. This year, the UCR Program will offer a limited release of Crime in the United States.

That release will include:

  • a trend study comparing 2020 and 2021 crime data using some of the new NIBRS estimation data
  • state-level data
  • federal data

The release will not include:

  • national view tables

The FBI will continue to work with law enforcement partners to increase the number of agencies participating in NIBRS so full statistics can be released in the coming years.

Events Mark the 50th Anniversary of Female Special Agents in the FBI

Source: US FBI

While at Quantico, the first female agents toured the campus to see the changes that have been made since they were students 50 years ago. One of the first two female special agents, Joanne Pierce (Misko), noted: “I am impressed with how much the FBI has grown over the last 50 years.” 

But beyond the growth in the Training Academy, she observed a more important change: “It is amazing to see so many female agents serving in leadership roles.” 

It is a big change from the days she and Susan Roley (Malone) were labeled “the experiment” after the FBI changed a long-standing policy that prohibited women from applying to be special agents. They entered the Training Academy on July 17, 1972. Today, more than 3,000 women serve as special agents.

FBI Marks One Year Since October 7, 2023, Hamas Attack

Source: US FBI

“The United States continues to be in a heightened threat environment, and the FBI is fully engaged to detect and stop any potential threats to the American people. As we mark one year since the October 7, 2023, attack by Hamas, the ongoing conflict in the Middle East calls for vigilance by the FBI, our law enforcement partners, and members of the public. 

It is essential to be watchful for threats against Jewish, Muslim, and Arab communities and institutions and to immediately contact law enforcement to report any suspicious activity. We continue to share intelligence with our law enforcement partners here and overseas and continue discussions with faith-based organizations, the private sector, and others about their concerns.

We must remember the hostages and the innocent lives lost throughout the Mideast over the last year. At the same time, the FBI remains focused on our mission to protect the American people and prevent acts of terrorism and hate.”

Joseph E. Carrico Named Special Agent in Charge of the Nashville Field Office

Source: US FBI

Director Christopher Wray has named Joseph E. Carrico as the special agent in charge of the newly reopened Nashville Field Office. He most recently served as the special agent in charge of the Knoxville Field Office.

Mr. Carrico joined the FBI as a special agent in 1999 and was assigned to the Dallas Field Office, where he investigated securities and bank fraud. He was also a member of the Evidence Response Team. In 2005, he was promoted to supervisory special agent and moved to the Human Resources Division at Headquarters.

In 2007, Mr. Carrico served as an assistant inspector in the Inspection Division. He returned to the Human Resources Division in 2008 as chief of the Special Agent Recruitment and Selection Unit.

In 2009, Mr. Carrico was selected as the supervisory senior resident agent in charge of the Covington Resident Agency in Kentucky, part of the Louisville Field Office. He returned to the Inspection Division in 2011 as special assistant to the assistant director.

In 2013, Mr. Carrico was promoted to assistant special agent in charge of the Administrative Branch of the Chicago Field Office. Three years later, he was promoted to chief of the Digital Forensics and Analysis Section of the Operational Technology Division. In 2018, Mr. Carrico was promoted to deputy assistant director in the division, overseeing digital and forensic analysis, computer network exploitation, and lawful electronic surveillance.

In 2019, Mr. Carrico was promoted to special agent in charge of the Knoxville Field Office, where he oversaw FBI work in eastern Tennessee. In 2024, Mr. Carrico was named the special agent in charge of the Nashville Field Office following the merger of the Knoxville and Memphis Field Offices, which will remain as resident agencies. 

Prior to joining the FBI, Mr. Carrico was a reserve deputy sheriff and a financial advisor in his hometown of Louisville. He earned a bachelor’s degree in business administration from the University of Kentucky.